BOARD02521

• Board Meeting Date: 9/21/1998
• Description: CF Section - Informational Items - Pinon Mesa Ranches Community Association - Raw Water System
• Board Meetings - Doc Type: Memo

3, A loan increase to the PMRCA for a total loan amount of $258,300,00 for a term of
10 years at 3,25 percent interest. The contract to include all conditions and
amendments relative to delivery of a deed of trust, collateral, reserve funds, etc, as
specified at the meetings,

,
.

Since those meetings RMI has communicated to PMRCA that they will re-commence
work on the project once they have received payment in full of all invoices submitted to
date, The total remaining to be paid by PMRCA is approximately $40,000,

CWCB staff attended a special PMRCA shareholders meeting at the home of Charles
(PMRCA President) and Irene Palmer the evening of September 3, 1998, Eight property
owners representing the ownership of IS parcels attended the meeting including the
Association's newly elected Vice-President and Treasurer who both took an enthusiastic
interest in the project status, A representative ofRMI was also in attendance,

After 3 hours of discussion, the group agreed to the following efforts to be completed by
the various organizations by October IS, 1998:

PMRCA:
I.

Collect $40,000,

RMI:

I.

Complete miscellaneous construction tasks including fencing, drainage
improvements, slope dressings, etc,
Acquire letter of commitment from the Red Cedar Gas Company,

.

2,

CWCB:
I.

Assist PMRCA in acquisition of the required right-of-way through the
Southern Ute Indian Tribe property.
Commence preparation and negotiations of the 3-party agreement.

2,

With all of these tasks completed by October IS, RMI was confident the project could be
completed, including the construction of the RO plant, by February 1999,

Recent Prol!:ress

On September 8 the PMRCA held a regularly scheduled Board of Directors meeting,
Staff received a call from PMRCA after that meeting informing the CWCB that:
I) they were no longer interested in participating in a 3-party agreement with regard to
the construction and operation of an RO plant,
2) as a private non-profit organization, they were going to pursue grant money and try
to finance completion of the project on their own, and
3) they were not certain that they could acquire the required $40,000 in the near future,

.